Mr Martin said he did not recall the term being used at the meeting.
"When people are talking, you are acknowledging that you are hearing what people are saying. I never responded to [that term]," he said.
The person who made the comment has since apologised to Mr Agnew, but almost a year later Mr Slater has publicised the incident, saying the council should show "integrity" and acknowledge the offensive comment.
He raised it last Wednesday as part of a series of protests at council meetings in the lead-up to the October election. The protestors had made jibes at a number of councillors and senior staff, using placards held up by Mr Slater and associates Wayne Deeming and Brian May, both of whom have had historic grievances with the council.
"I thought the best time to bring it up again was election time," Mr Slater said. "This was at a public meeting. It's not really a good thing. These people are meant to be representing us."
Mr Slater has stood for council and the Whangarei mayoralty, but said he was not seeking election in 2016. "When you get these sorts of lies and deceit, I don't want to work in that environment," he said.
Mr Slater filed an Official Information Act request to the WDC, asking where "dwarf corner" was. He was told no such place existed on council records.